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FY 2019 VERA/VSIP Opportunity
National Capital Region Medical Directorate (NCR-MD) CHRC Briefing May 2019 Welcome to the 2018 VERA/VSIP briefing. We will provide an overview of what VERA/VSIP is, Timelines, Calculations, & ABC Contact Information.
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What is VERA/VSIP? Voluntary Early Retirement Authority (VERA) and Voluntary Separation Incentive Pay (VSIP) are workforce reshaping flexibilities for the civilian workforce Civilian employees who apply and are approved can retire earlier than normal and receive a monetary incentive
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Voluntary Early Retirement Authority
What is VERA? Voluntary Early Retirement Authority Temporarily lowers the age and service requirements for retirement to increase the number of employees who are eligible VERA Approval The approval process will follow the Chain of Command structure Decisions are made based on the restructuring options for the employee’s position **Age is discussed on next slide. Chain of Command is Immediate Supervisor (Department Head), Department Head (Director), MTF Center Director, CHRC, NCR-MD, and finally DHA for approval.
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Who is eligible for VERA?
Must meet age and service requirements At least 50 years of age and 20 years of creditable service, or Any age with at least 25 years of creditable service Must be a U.S. citizen Must be on a permanent appointment (Serving under an appointment without time limitation) Must have been continuously employed within the Department of Defense for more than 30 days as of 2 June 2019 If employees are approved for VERA Must voluntarily retire Retention incentive (if applicable) will be terminated if VERA/VISP is approved/approval letters from NCR-MD have been issued (6 September 2019) There are specific requirements that must be met as indicated on this slide. You must submit your application before COB 23 Feb 2018.
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Who is NOT eligible to apply for VERA?
Currently under a service agreement, including relocation or recruitment incentives Reemployed Annuitant Eligible for disability retirement under any Federal Employee Retirement Systems Have received a decision notice of involuntary separation for misconduct or unacceptable performance These are the 4 categories that are not eligible for VERA. If you have any questions on this, feel free to contact our office.
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Voluntary Separation Incentive Pay
What is VSIP? Voluntary Separation Incentive Pay Commonly known as a “buyout” -- a management tool designed to encourage employees to voluntarily separate, either by retirement or resignation Not an employee entitlement VSIP Approval The approval process will follow the Chain of Command structure Decisions are made based on the restructuring options for the position Positions cannot be filled as the same position – must be abolished or restructured VSIP is Voluntary Separation Incentive Pay. You must meet certain criteria to be eligible that we will discuss on the next slide. Again, Chain of Command is Immediate Supervisor (Department head), Department Head (Director), MTF Center Director, CHRC, NCR-MD, and finally DHA for approval. If approved for VSIP there are certain requirements that will prevent you from returning to federal service that we will discuss later.
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Who is eligible to receive VSIP?
Must be a U.S. citizen Must be on a permanent appointment (serving under an appointment without time limitation) Must have been continuously employed by the DoD for 12 months If employees are approved for VSIP Must voluntarily retire or resign and Retention incentive (if applicable) will be terminated if VERA/VISP is approved/approval letters from NCR-MD have been issued (6 September 2019) Here are the requirements for VSIP eligibility. Please note the difference between VERAs requirements of 31 day vs. VSIP 12 months continuous employment. Please remember that these two programs are different in their requirements. You cannot lump them together.
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Who is NOT eligible to apply for VSIP?
Reemployed Annuitants Is eligible for disability retirement; Have received a decision notice of involuntary separation for misconduct or poor performance; Previously received any VSIP from the Federal Government; Currently on a service agreement related to receiving Student Loan Repayment, Recruitment/Relocation Incentive. There are the 5 categories that are not eligible for VSIP . If you have any questions on this, feel free to contact our office.
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VSIP consideration on Case by Case Basis? (Continued)
Typically, the following positions designated by DoD and the Office of Personnel Management (OPM) as severe shortage of candidates, critical hire, and/or mission critical are not eligible. However, applications will be considered on a case by case basis. In addition to the 5 categories mentioned previously, there are certain positions as identified in this slide that may not be included in this VERA/VSIP programs, due to shortage of candidates, critical hire and/or being identified as mission critical. However, we encourage you to apply. Note to Instructor: Read a few series as an example. Skill Type 3 Skill Type 4 Skill Type 5 610-Nurses 647-Diagnostic Radiologic Technologist 649-Medical Instrument Technicians 645-Medical Technicians 644-Medical Technologists 621-Nursing Assistants 661-Pharmacy Technicians 620-Practical Nurses 181-Psychology Technicians 690-Industrial Hygienists 2210-Information Technology Management (Information Security only)
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VSIP Personnel Action and Payment
Employees accepting a VSIP buyout must sign an agreement statement Confirming the voluntary nature of the action, and Indicating an understanding of the reemployment restrictions, and Identifying the incentive payment terms (How you want to receive the VSIP) Employees have three options for payment In a lump-sum payment up to $40,000 (before taxes) In bi-weekly payments in equal amounts at a rate selected by the employee Receive one half of the buyout 6 months following the separation and the remaining half 6 months later If approved, separate instructions will be ed on options in payout. Be mindful of any timelines/suspense dates indicated.
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How is VSIP calculated? VSIP pay is calculated based on length of service and age of the employee (similar to severance pay). Employees can use the severance pay calculator to determine the approximate VSIP amount. The calculator is available at The amount the employee actually receives is less than the amount determined using the calculator because of the deduction of taxes, including Federal, state, social security, and Medicare, as appropriate. The method of calculating VSIP is the same method used for severance pay. Severance pay is the amount of money an eligible employee would receive if being separated such as through Reduction in Force. Age adjustment allowance is augmented 10 percent of the basic allowance for each year that you exceed age 40 at the time of your separation. A severance pay calculator is available in EBIS in ABC-C’s web site which is listed above and on the last two slides. ABC-C – it is easy to use and you will see the immediate amount of the calculation.
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Sample Severance Pay Calculation Results for VSIP
EMPLOYEE A Total Salary: $63,673 Date of Separation: 04/30/2012 Date of Birth: /26/1979 Service at Separation: 13 Years, 7mos Age at Separation: 32 Years, 6mos Weekly Basic Pay: $1,220.37 Summary: Basic Severance Allowance: $20,746.29 Age Adjustment Allowance: $0.00 Total Severance Pay: $20,746.29 (Maximum VSIP $20,746) EMPLOYEE B Total Salary: $73,619 Date of Separation: 04/30/2012 Date of Birth: 05/31/1950 Service at Separation: 26 Years Age at Separation: 51 Years, 11mos Weekly Basic Pay: $1, Summary: Basic Severance Allowance: $59,262.00 Age Adjustment Allowance: $80,709.20 Total Severance Pay: $80,746.29 (Maximum VSIP $40,000) This is a sample of calculated severance pay. Notice that employee A is only receiving $20,000 VSIP where as employee B is granted $40,000. Age and service at separation (as identified on this slide) can impact this.
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Can I return back to work if I accept VERA and/or VSIP?
If you retire on VERA authority without a VSIP buyout You may return immediately to the Federal Government as a re-employed annuitant; or You may accept a non-appropriated fund position, or You may work as a contractor If you accept a VSIP buyout And later accept employment for compensation with the Government of the United States within 5 years of the date of the separation, including work under a personal services contract or other direct contract, you must repay the entire amount of the VSIP to the agency that paid it - before the individual's first day of reemployment You may return to any federal agency after 5 years without having to pay back any VSIP buyout amount received And were a DoD employee at the time of acceptance, you may not be reemployed by the Department of Defense for 12 months after separation. VSIP Employment Restrictions Employees are restricted from working for DoD for 12 months. Employment in any Federal agency within 5 years will require you to pay back the money.
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Commencement Date of Annuity for Retirement
Effective date of voluntary option and early retirement for both CSRS and FERS employees is 30 Sep 2019 Annuity begins to accrue the following day, to be paid 6 to 8 weeks after your retirement date Submit paperwork for retirement at the same time as the application for VERA/VSIP The Army Benefits Center-Civilian (ABC-C) needs enough time to review and process If application for VERA/VSIP is not approved, applicant can withdraw application from ABC-C Log in to EBIS to obtain retirement estimate – link is at Retirement paperwork must be submitted at the same time as your application for VERA/VSIP, which is COB 23 Feb The retirement application is more detailed and longer than the VERA/VSIP applications. Employee has until 27 Apr 2018 to withdraw retirement application from ABC-C. Note: If approved for VERA/VSIP you must be off the rolls by 31 May 2018.
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ABC-C – Contact Information NCR-MD employees are serviced by the Army Benefits Center – Civilian (ABC-C) in Fort Riley, Kansas ABC-C website: Toll-free telephone number is Toll-free TDD for the hearing impaired is ABC-C is available to those without computer access EBIS requires use of .mil domain computer (CAC access), SSN and PIN You don’t have to write down this information —These slides will be posted to CAPMED website. Reminder: EBIS can be found on the ABC-C website (identified above) in the upper right hand corner of the home page.
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NCR-MD FY 19 VERA/VSIP Timeline
13 May – 31 May 2019 – CHRC Conduct Town Hall Briefings 3 Jun – 21 Jun Open Window for employees to apply for VERA or VSIP; verify retirement eligibility and complete part 1 of application to submit to Department Head 24 Jun – 12 Jul 2019 – MTFs/Center completes Parts 2-4 of application; recommends approval/disapproval of applications 15 Jul – 26 Jul CHRC completes Part 5 of application 29 Jul – 9 Aug 2019 – NCR-MD completes Part 6 of application; submits to DHA 12 Aug – 23 Aug 2019 (approx) - Director, DHA makes final decision NLT 6 Sep Employees who applied will be notified by letter NLT 30 Sep Employees approved for VERA and/or VSIP must be off the roles by this date Restructured positions must begin recruitment process NLT 60 days (30 November 2019) after effective date of employee coming off the roles.
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What the Employee Needs to Do
Action Instruction Timeframe Confirm your eligibility for VERA/VSIP Confirm you meet the age and service requirements Confirm you meet the requirements listed on the VERA/VSIP application Contact your HRL representative or the CHRC with further questions NLT 21 Jun 2019 Fill out and submit VERA/VSIP application Download the application Fill out Part 1 of the VERA/VSIP application Submit to your Department Head 3. Fill out ABC-C paperwork Download the ABC-C application at Complete and turn in retirement paperwork to ABC-C If Approved… 4. Receive Letter of Approval from NCR-MD You will receive a letter confirming your approval for VSIP and/or VERA NLT 06 Sep 2019 5. Submit final ABC-C application with Letter of Approval from NCR-MD Send ABC-C a copy of your Letter of Approval Send ABC-C your retirement paperwork if you haven’t already done so NLT 09 Sep 2019 6a. Submit DD2903 to CHRC 6b. Submit returned/verified DD2903 from CHRC to ABC-C Complete DD2903 form (if approved for VSIP) send to CHRC for signature at: Once CHRC-RI has verified, signed and returned DDD2903 to employee. employee MUST add their social security number and written initials to DD2903 then send document to ABC-C NLT 13 Sep 2019 7. Request of Personnel Actions (RPA) ABC-C will initiate the retirement RPAs If NOT approved… Withdraw retirement paperwork from ABC-C Contact your Department Head for questions If ABC-C confirms eligibility… 8. Contact HRL Contact HRL representative to begin out-processing NLT 30 Sep 2019 If NOT found eligible… Contact the CHRC for questions
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References VSIP Authority VERA Authority 5 U.S.C. 3521 5 CFR Part 576
VERA Authority 5 U.S.C. 8336(d)(2)(D) for CSRS 5 U.S.C. 8414(b)(1)(B) for FERS 5 CFR Part for CSRS 5 CFR Part for FERS
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Questions? NCR-MD VERA/VSIP Application and Information link:
For further information, please contact your VERA/VSIP POC: For FBCH & DLTC(Pentagon) For WRNMMC, IRMAC, & JPC
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